The Rhode Island Representatives Chamber has approved a state budget of $ 13,900 million that introduces a fiscal surcharge on second luxury residences, a measure popularly known as the “Taylor Swift Tax”which could assume for the singer an additional payment of $ 136,000 annually in taxes.
The decision, adopted last week in the capital of Rhode Islandresponds to the growing worry for the affordability of housing in the coastal communities of the State.
The new surcharge is aimed at residential properties not occupied by its owners, whose value exceeds 1 million dollars and that remain empty for more than half of the year. This legislation, which should still receive the approval of the state Senate, could come into force in July 2026.
The artist has a mansion valued at $ 17 million in Watch Hillone of the most exclusive areas of the coast of Rhode Island.
His case illustrates the scope of the measure, although dozens of owners of housing Luxury throughout the coast they will also be affected.
The surcharge establishes an annual rate of $ 2.50 for every $ 500 of appraised value that exceeds the first million dollars.
Thus, a property such as Taylor Swift It would face a considerably greater fiscal invoice, but the measure is not limited to celebrities: it will impact numerous owners of second residences of high value.
The initiative It arises In a context of Growing tensions between permanent residents and seasonal owners. In the coastal communities of Rhode Islandmany accuse the wealthy seasonal residents of raising properties and contributing little to community life during the year.
The budget approved Not only contemplate he surcharge On second luxury residences. Also includes an increase in 63% in the transfer tax that all property sellers must pay.
For the average price of a home in Rhode Islandthat is around $ 493,000this means that sellers will pay approximately $ 3,700 dollars in transfer taxesin front of $ 2,200 dollars that were previously required. This increase affects a broad spectrum of real estate transactions and has generated concern in the sector.
The Association of Real Estate Agents of Rhode Island He has expressed a frontal opposition to both measures. Chris Whittenpresident of the organization, warned about the possible negative impact on a real estate market that already faces tensions. Speaking to NBC 10, Whitten asked legislators: “Please do not take our real estate market at this time to balance the budget of other items, it will be harmful.”. The concern focuses that these changes can discourage investment and make access to housing even more.
Dave Portnoyfounder of Barstool Sports and owner of luxury housing in the neighbor Massachusettsexpressed his concern about the possibility that other states take similar measures. In an interview with Fox Business, Portnoy said: “We don’t like that tax, Stuart”and expressed their fear that neighboring states can “take ideas” and replicate the model of Rhode Island.
From the legislative field, the justification of the measure focuses on the need to address two simultaneous crises: medical care and housing scarcity. The president of the Chamber, Joe Shekarchidefended the decision as a way of distributing the fiscal burden more equitably.
In a statement, Shekarchi explained: “I considered that it was more equitable. This position seeks to protect permanent residents and average and low -income families, moving part of the fiscal effort to those who have high value and sporadic use properties.
